Trump Issues Fresh Warning: 25% Tariff If iPhones Are Made in India or Elsewhere
#News Bureau May24,2025
Former U.S. President Donald Trump has once again issued a stern warning, saying that if Apple manufactures iPhones in India or any country outside the United States, a 25% tariff will be imposed on those products. Reiterating his “America First” stance, Trump emphasized that American companies should produce goods domestically to avoid penalties and protect U.S. jobs.
The statement is seen as part of Trump’s broader push to bring manufacturing back to the U.S., especially as Apple continues to expand its production footprint in countries like India and Vietnam.
Donald Trump has once again created a stir in the field of global trade and manufacturing. He warned Apple that if iPhones are manufactured in India or any other country, then a 25% tariff will be imposed on these phones sold in America. Trump’s warning has come at a time when America is in trade talks with many countries including India. India and America are preparing to sign an interim trade agreement before July 8. This agreement is considered to be the first phase of a free trade agreement i.e. FTA. That is, zero tariff was expected. India has demanded complete exemption from the 26 percent additional tariff imposed on domestic goods in this agreement. Other countries are also expecting a similar deal. But Trump’s latest warning has surprised everyone.
This latest statement of Trump raises serious questions not only for countries like Apple and India, but also for global supply chain and trade policies. This statement of Trump is another example of his America First policy, which was clear even in his first term. They argue that high-priced products like iPhones should be manufactured in the US to create local jobs and strengthen the economy. However, this approach raises many questions. Will this policy actually benefit the US economy, or is it just a strategic pressure aimed at forcing big companies like Apple to invest in the US?
Critics say that this statement is a dangerous step towards protectionism, which could harm global trade. Countries like India have become an important hub in Apple’s supply chain in recent years and could be most affected by Trump’s policy. Manufacturing iPhones in India not only reduces costs but also creates millions of jobs. Trump’s warning could strain India-US trade relations, especially when the two countries have been working towards strengthening strategic partnerships in recent years.
Apple has started mass production of iPhones in India in collaboration with partners like Foxconn and Tata. This is not only a part of India’s ‘Make in India’ campaign, but it is also an important step towards establishing the country as a global manufacturing hub. Trump’s warning creates many problems for India.
If Apple reduces or stops production in India, it can affect millions of jobs. This will be a big blow for states like Tamil Nadu and Karnataka where Apple has factories. Efforts to promote an export-based economy in India can also be harmed.
Apple’s supply chain is spread globally and India is an important part of it. Trump’s move can affect not only India, but also other countries like China and Vietnam, where iPhones are manufactured. It can create disruptions in the global supply chain, which can increase the prices of iPhones.
India-US relations have strengthened strategically in recent years, especially due to a common stand against China. Trump’s statement sends a message to India that it should be ready to bow down to America’s economic policies. This raises questions about India’s autonomy and its position in global trade.
Apple’s dilemma
For Apple, Trump’s warning presents a problem. Manufacturing iPhones in the US could raise costs substantially, as labour costs in the US are much higher than in India or other Asian countries. This could lead to a hike in the price of iPhones, which could be a negative for consumers. Also, if Apple stops manufacturing in countries like India, it would have to reorganise its global supply chain, which would be costly both in terms of time and cost.
Apple has already made large investments in India and the Indian government has given it a push to do so.
